EDIT: @ EVERYONE: OP was trying to be clever and was actually defending Skyrim by saying it's story, dialogue, and overall depth should not be subject to harsh criticism as it's an open world game. Since it's an open world game, it does not and cannot focus on story, dialogue, and so on and so forth. I STRONGLY disagree with OP, just wanted to clarify this here as many of us were hopelessly confused since OP wouldn't just come out and say it. Anyways, here we go:
I'm not saying that there is an excuse, but I'm also not saying that those small criticisms warrant a complete overhaul to the game. In many ways you'd have to give up something in order for those to be better and if they did focus more time on those elements the world itself may become nothing more than a MMO world.
Of course you're saying there is an excuse-- the excuse being that Bethesda creates open world games. The ideology (for a long time) was that players will have to deal with shortcomings if they want a sandbox RPG. I agree, and I'm fine with that. The bugs are acceptable (aside from the PS3 memory issue, which I found unacceptable). You don't need a completely new hand crafted quest pertaining to every bounty in Skyrim, sure. The last line of what you typed here really bothers me. You're saying that if Skyrim polished its story, added meaningful dialogue with consequences as well as interesting NPC's it would be an MMO? This makes very little sense. The "go kill 10 board and come back" is a staple of MMO gameplay, and one that seems like it's worked its way into Skyrim "go kill this bandit, come back and get gold."
Now, while we're talking about both genre constraints and MMO's, let's look at The Old Republic. BioWare managed to have excellent dialogue, a great story, diverse side quests, all in a huge MMO world. Before that game, no one would criticize an MMO's story or quests because it's an MMO. It's a grind fest. That's its genre. Well, BioWare broke the stereotype so why can't Bethesda?
When you look at the world it's amazing to see it in comparison to other games. Dragon Age and Mass Effect don't even hold a candle to the sheer atmosphere, or beauty that's Skyrims world. WoW and Kingdoms of Amalur have good worlds but nothing on the level of Skyrim's. The world feels very organics, it has subtle beauty and depth. It doesn't feel overly video gamey and just feels very natural. I've never really played a game that quite had the world that Morrowind, Oblivion, and Skyrim have had. They're the masters at crafting a world that just blows everyone else's away.
Interesting you brought up KoA, as that serves to further go against your argument. KoA is an open world game. It's huge, and still has interesting combat. Is it as realistic as Skyrim? No. The art style they chose was rather cartoonish-- but still impressive. And yes, it IS still an open world game. Does Skyrim have subtleties that KoA doesn't? Sure! But just because that waterfall looks *really* cool in Skyrim isn't an excuse to have an overall bland and boring combat system. The argument since Morrowind was, "it's an open world game. It would be too taxing on developers to create a good looking combat system for an open world game. Well, obviously KoA beat that "argument." I'm not a game designer, but I don't see how creating fluid, interesting looking combat would somehow be too much for them to handle simply because the game map is big.
Yeah it may not have dialogue like Mass Effect, or choices like Dragon Age. It may not have the loot of WoW, or the combat of Kingdoms of Amalur. But it has something better than any of those games and in order for them to be great at what they do they had to give up something in return.
As for dialogue, nobody is asking for BioWare quality (realistically). BioWare has always created some of the best RPG's we've ever seen because of their writing. That would be like telling Chuck Palahniuk that he needs to write on par with George RR Martin. Palahniuk wrote some excellent books and fans still demand quality from him, but nobody expects him to beat out Martin. Not gonna happen. HOWEVER, I find Skyrim's dialogue to be so abysmally shallow and lacking I think it's a perfectly legitimate area for complaint. In an RPG, we need choices. Even the good, neutral, evil choices you cited earlier would be 100x better than what we currently have in place. Maybe you'd be concerned about memory constraints, adding that much content to the game-- well, I made several threads (I think you contributed to a few of them, still stubbornly demanding voice acting) which covered the issue of voice acted dialogue vs. test dialogue (provided the text was deeper, more meaningful, with branching options). AGAIN, why can't Bethesda hire writers to create interesting dialogue for the game?
Ultimately you can never be the best at everything, you have to specialize. Whether this be real life, or a video game you always will excel at something and fail at something else.
No one is asking for the best of everything-- not even close. We're asking for a step above mediocrity. Bethesda has (once again) brought us a very fun open world game, but as an RPG it's failing worse than prior installments. Their budget, the time they had to produce the game, and their experience should have brought us a more interesting story, better dialogue, and more memorable NPC's. Monster variety, quest variety, writing, dialogue, combat, and depth should NEVER be sacrificed because "it's got a big map."